QE over in Oct?

[Thailandnotes]

Re: QE over in Oct?

http://www.politico.com/magazine/sto...l#.U99YTaPJ2So

galbraith..."why we won't get to normal"

[Slimprofits]

Re: QE over in Oct?

FRED and the guy in charge of FRED get some pub. in the WaPo: http://www.washingtonpost.com/news/s...secret-weapon/

[lektrode]

Re: QE over in Oct?

FRED and the guy in charge of FRED get some pub. in the WaPo: http://www.washingtonpost.com/news/s...secret-weapon/

whoa.... uhhhh.....

huh?

whats 'our Fred' think about that ?

[Polish_Silver]

EJ on USD as safe haven

What "hard assets" may be of most interest? And which jurisdictions would those assets likely be located?
. . .

I would rephrase the first sentence in your second paragraph with the observation that the Japanese and Chinese economies have been dependent on US fiscal bailouts for years. The asset speculation based USA economy has been equally dependent. See EJ's 2006 article "Economic M.A.D."

But the deficit that the USA needs the Chinese to fund is shrinking fast, . . . .

In an increasingly troubled world -- financially, politically and militarily -- there will be a flight to hard assets. What if those hard assets being sought are increasingly in the comparatively secure, and now much more competitive (including lower energy cost) production economy jurisdiction of the USA. If so, they will require one to acquire US$ first in order to purchase.

The 1998 Janszen Scenario theorizes that at the end of this asset price inflation, deflation, reflation cycle lurks a final deep deflationary process to cap the asset price inflation era, to which monetary authorities and legislatures respond again with a final credit expansion. But, that rather than expanding the purchasing power of bonds it causes a loss of faith in the monetary units in which the bonds are denominated. A global US dollar, euro, and yen bond and currency crisis follows.

--EJ

USD might indeed be a conduit through which foreigners purchase hard assets. But that implies only a very temporary strength in USD. It is the items held long term which are the "safe havens". I agree with EJ's quote that the various paper currencies are "hot potatoes" at the end stage.


The US debt situation is abysmal.


Any "deficit reduction" is relative to the 2009 stimulus. The deficit of 2014 will be far greater than 2004-2005.

The small surplus shown around 2000 is illusory---it counts the social security tax as part of general revenue.

FICA is magical. It's cash surplus is saved as a "trust fund" and it is current income for the government at the same time!